"It seems unlikely that we will reconsider policies based solely on fluctuations in stock prices over one or two days."
Spokesperson Kang Yu-jung said on the 5th that she has not requested the ruling Democratic Party of Korea leadership to review the criteria for the major shareholder capital gains tax. The market reacted sensitively. Around 11:20 a.m., when related news emerged, the KOSPI index, which had been battling around the 3200 mark, fell to 3174.23. The KOSDAQ index also dropped to 793.12, giving up the 800 mark.
After it was reported that Spokesperson Kang said, "The Lee Jae-myung administration is gradually promoting measures to make the stock market structurally healthier," and "If the party prepares a plan, I can certainly listen to it," the market turned back upward.
It was a day of ups and downs since the first tax reform proposal of the Lee Jae-myung administration was far from market expectations. Domestic securities firms as well as global investment banks evaluated that the tax reform plan was in stark contrast to the trend of supporting the stock market.
With the new leadership of the Democratic Party of Korea deciding to prepare improvement plans, whether the content will meet market expectations is expected to be a key factor. The Democratic Party of Korea and the People Power Party are also expected to hold discussions on the tax reform plan on the 7th, which could increase volatility.
Separately from the tax reform plan, a renewed preference for risky assets led to an overall bullish trend in the stock market. The rapid cooling of the U.S. labor market has fueled expectations that the Federal Reserve will cut interest rates in September.
Lee Kyung-min of DAISHIN SECURITIES said, "As expectations for interest rate cuts increased, global stock markets showed a synchronized recovery," and added, "In the domestic market, tech stocks and interest-sensitive sectors like secondary batteries, biotech, semiconductors, and robotics were strong."
The KOSPI index closed at 3198, up 50.25 points (1.6%) from the previous day. The KOSDAQ index also finished at 798.6, an increase of 14.54 points (1.85%).
In the KOSPI market, foreigners and institutions exhibited net buying with 2.919 trillion won and 945 billion won, respectively. Individuals sold a net 471.8 billion won. In the KOSDAQ market, foreigners and institutions had net purchases of 45.7 billion won and 25.7 billion won, respectively. Individuals were net sellers by 63.3 billion won.
Most of the top market capitalization stocks in the KOSPI market showed strong performance. Samsung Electronics, SK hynix, LG Energy Solution, and Hanwha Aerospace all saw their stock prices rise from the previous day. Hyundai Motor's stock price slightly declined.
In the KOSDAQ market, the stock price of ECOPRO BM, which recorded surprising results exceeding market expectations, showed remarkable growth. Additionally, Alteogen, Ecopro, and Peptron finished trading at higher prices than the previous day. HLB and Sam Chun Dang Pharm struggled.
In the Seoul foreign exchange market, the won finished trading at 1388.3 won against the U.S. dollar, up 3.1 won from the previous day.